Following are selected accounts for Green Corporation and Vega Company as of Dec
ID: 2408121 • Letter: F
Question
Following are selected accounts for Green Corporation and Vega Company as of December 31, 2015. Several of Green's accounts have been omitted. Green Vega $900,000 $500,000 360,000 200,000 40,000 60,000 Revenues Cost of goods sold Depreciation expense Other expenses Equity in Vega's income Retained earnings, 1/1/15 Dividends Current assets 140,000 100,000 1,350,000 1,200,000 80,000 300,000 1,380,000 450,000 180,000 750,000 280,000 300,000500,000 600,000 620,000 80,000 75,000320,000 195,000 an Building (net) Equipment (net) Liabilities Common stock Additional paid-in capital 450,000 Green acquired 100% of Vega on January 1, 2011, by issuing 10,500 shares of its $10 par value common stock with a fair value of $95 per share. On January 1, 2011 Vega's land was undervalued by $40,000, its buildings were overvalued by $30,000, and equipment was undervalued by $80,000. The buildings have a 20-year life and the equipment has a 10-year life. $50,000 was attributed to an unrecorded trademark with a 16-year remaining life. There was no goodwill associated with this investment. Compute the December 31, 2015, consolidated trademark.Explanation / Answer
The answer is $34,375
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Cost Allocated to Trademaerk $ 50,000.00 Amortization(50000/16*5) $ 15,625.00 Net Book Value $ 34,375.00